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- Ted Houser wishes to accumulate a fund of $40,000 for the purchase of a house and lot. He plans to deposit $4,000 semiannually at the end of each 6 months. Assuming interest at 14% a year compounded semiannually, how many deposits of $4,000 each will be required, and what is the amount of the last deposit?Fred is considering an investment that will cost him $1000 today and will pay $200 at the end of each month for twelve months with a final cost at the end of the twelve month period of $400. Draw two cash flow diagrams, one showing the cash flows separately and the other showing the net cash flows.Walt is evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Walt believes that he should earn an annual rate of 9% on this investment. How much should he pay today for the investment?
- The maintenance on a machine is expected to be $1,500 at the end of four years. This amount is expected to increase by $100 each year for the next five years. What sum of money must be set aside now to pay the maintenance for this whole period? Use 5% interest. Draw a cash flow diagram and do a manual solution.Troy will receive $7,500 at the end of Year 2. At the end of the following two years, he will receive $9,000 and $12,500, respectively. What is the future value of these cash flows at the end of Year 5 if the interest rate is 8 percent?Architect Santos is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6 months until he retires, so that, beginning one year after his retirement, he will receive annual payments of P600,000 for the next 10 years. Determine the value of A which he should deposit semi-annually if the interest rate 8% compounded semi-annually. Use equation of value with focal point at Year 15. Show Cash Flow Diagram.
- The West Mount Trading deposited yearly an amount of $5000 for 15 years. The accumulated amount was used to cover an emergency repair costing $100,000 in year 15. Draw the cash flow diagram. Calculate the rate of return of that this investment provided to the West Mount Trading.Renata converted the payment of her ₱50,000 debt to five (5) equal payments at the end of each year. If there is an interest rate of 10% per year, determine the present worth and future worth of the annual payments. What is the value of the five (5) annual payments at the end of the third period? Include the cash flow diagram in your solution.You have been offered the opportunity to invest in a project that will pay$3,509per year at the end of years one through three and$6,911per year at the end of years four and five. These cash flows will be placed in a saving account that pays11.95percent per year. What is the future value of this cash flow pattern at the end of year five? Round the answer to two decimal places. Your Answer:
- You will receive the following cash flows at the end of each year for the next 5 years. Year 1: $1,500; Year 2: $3,500; Year 3: $9,500; Year 4: $0; Year 5: $1,500. You can invest the money at an annual return rate of 8%. What is the present value of this stream of future cash flows? Group of answer choices $12,325.07 $12,951.86 $13,033.53 $13,988.00Arona would like to receive $15,820 each year for the next 5 years, starting today. Then she hopes to receive $17,500 per year at the beginning of the 6th year for an additional 5 years. In total 10 payments. Assume an interest rate of 6%. Find the present value of this cash flow stream. 2. Find the future value of this cash flow stream please use formula or any necessary diagram. please provide steps and explanationDraw the necessary cash flow diagrams. Prob#1: Determine the present worth of an annual payment of P 4500.00 : If made at the beginning of the year for 12 years at 8% compounded annually. If made at the end of each month for 5 years at 4% compounded monthly. If 15 payments start at the end of year 4 at 6% compounded annually.